Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17961 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

under the Office of the Commissioner 

receives the revenues and makes the 

payments for certain common expenses, 

including each club’s contribution to 

the Plan. In support of the waiver 

request, the requester asserts that: ‘‘The 

Plan is funded directly from Revenues 

which are paid from the Central Fund 

directly to the Plan without passing 

through the hands of any of the clubs. 

Therefore, the Plan enjoys a substantial 

degree of security with respect to 

contributions on behalf of the clubs. A 

change in ownership of a club does not 

affect the obligation of the Central Fund 

to fund the Plan out of the Revenue. As 

such, approval of this exemption 

request would not significantly increase 

the risk of financial loss to the Plan.’’

Based on the facts of this case and the 

representations and statements made in 

connection with the request for an 

exemption, the PBGC has determined 

that an exemption from the bond/ 

escrow requirement is warranted, in that 

it would more effectively carry out the 

purposes of Title IV of ERISA and 

would not significantly increase the risk 

of financial loss to the Plan. Therefore, 

the PBGC hereby grants the request for 

an exemption for the bond/escrow 

requirement. The granting of an 

exemption or variance from the bond/ 

escrow requirement of section 

4204(a)(1)(B) does not constitute a 

finding by the PBGC that the transaction 

satisfies the other requirements of 

section 4204(a)(1). 

The determination of whether the 

transaction satisfies such other 

requirements is a determination to be 

made by the Plan sponsor. 

Issued at Washington, DC, on this 30th day 

of March, 2007. 

Vincent K. Snowbarger, 

Interim Director, Pension Benefit Guaranty 

Corporation. 

[FR Doc. E7–6706 Filed 4–9–07; 8:45 am] 

BILLING CODE 7708–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55570; File No. SR–CBOE–

2007–15] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing of 

Proposed Rule Change To Amend 

CBOE’s Membership Application 

Procedures To Incorporate Individuals 

Who Are Acting in an Exchange 

Trading Floor Capacity 

April 2, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

14, 2007, The Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ or 

‘‘Exchange’’), filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by CBOE. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend its 

membership application procedures to 

incorporate those individuals who are 

acting in an Exchange trading floor 

capacity. Set forth below are the 

proposed changes to the rule text with 

additions in italic. 

Chicago Board Options Exchange, 

Incorporated 

Rules 

* * * * * 

Rule 3.9. Application Procedures and 

Approval or Disapproval 

(a)–(f) No Change. 

(g) Any person applying pursuant to 

paragraph (a) of this Rule to have an 

authorized trading function is required 

to have completed the Exchange’s 

Member Orientation Program and to 

have passed an Exchange Trading 

Member Qualification Exam. 

Additionally, any person who has 

completed the Member Orientation 

Program and taken and passed the 

applicable Trading Member 

Qualification Exam and who then does 

not possess an authorized trading 

function or Exchange trading floor 

capacity for more than 1 year is required 

to complete the Member Orientation 

Program and to re-pass the applicable 

Trading Member Qualification Exam in 

order to once again become eligible to 

have an authorized trading function. A 

person must score 75% or better on the 

applicable Trading Member 

Qualification Exam in order to pass the 

Exam. Any person who fails the 

applicable Trading Member 

Qualification Exam must wait 30 days to 

re-take the Exam after failing the Exam 

for the first time, must wait 60 days to 

re-take the Exam after failing the Exam 

for the second time, and must wait 120 

days to re-take the Exam after failing the 

Exam for a third or subsequent time. 

The Exchange may not waive any of the 

requirements set forth in this paragraph 

(g). 

(h)–(l) No Change. 

* * * Interpretations and Policies: 

.01 No Change. 

.02 No Change. 

.03 For purposes of this rule, 

‘‘Exchange trading floor capacity’’

means any person who is acting on 

behalf of the Exchange in an Exchange 

trading floor capacity, such as a PAR 

Official, Order Book Official, or other 

similar function. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

CBOE included statements concerning 

the purpose of, and basis for, the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. CBOE has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Exchange Rule 3.9, entitled 

‘‘Application Procedures and Approval 

or Disapproval,’’ outlines, among other 

things, the application procedures for an 

individual who desires to become a 

member of the Exchange. Paragraph (g) 

of Exchange Rule 3.9 currently requires 

any person applying to the Exchange to 

(i) have completed the Exchange’s 

Member Orientation Program 

(‘‘Orientation Program’’) and (ii) passed 

an Exchange Trading Member 

Qualification Exam (‘‘Qualification 

Exam’’). However, a person who has 

completed the Orientation Program and 

taken and passed the Qualification 

Exam but does not possess an 

authorized trading function for more 

than one year must again complete the 

Orientation Program and re-pass the 

Qualification Exam. 

This filing proposes to amend CBOE’s 

rules to provide that PAR Officials and 

Order Book Officials, as described in 

CBOE’s rules and discussed below, as 

well as others acting in a similar 

capacity (i.e., an Exchange trading floor 

capacity), shall be included in the rule, 

in addition to those who possess an 

authorized trading function, since both 

functions are similar. 

On November 18, 2005, the 

Commission approved a filing which 


cprice-sewell on PROD1PC66 with NOTICES
17962 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 

3See Securities Exchange Act Release No. 52798 

(November 18, 2005), 70 FR 71344 (November 28, 

2005) (SR–CBOE–2005–46). 

4This provision will not apply to option classes 

that are on the CBOE’s Hybrid System. 

5 15 U.S.C. 78f. 

6 15 U.S.C. 78f(b)(5). 7 17 CFR 200.30–3(a)(12). 

created a new category of market 

participant called ‘‘PAR Officials.’’ 3 The 

PAR Official was established in 

response to the elimination of CBOE’s 

rules as applied to Designated Primary 

Market-Makers (‘‘DPMs’’) executing 

orders as agents or Floor Brokers in their 

allocated option classes. The PAR 

Official is responsible for operating the 

PAR workstation trading stations, 

including handling and executing 

orders that are routed to the PAR 

workstation. 

Specifically, the PAR Official is an 

Exchange employee or independent 

contractor designated by the Exchange 

to be responsible for (i) operating the 

PAR workstation; (ii) when applicable, 

maintaining the customer limit order 

book for the assigned option classes; 4

and (iii) effecting proper executions of 

orders placed with him. 

In addition to PAR Officials, the 

Exchange also employs ‘‘Order Book 

Officials’’ (‘‘OBOs’’) whose 

responsibilities include, among other 

things, (i) maintaining the book with 

respect to the classes of options 

assigned to him, (ii) effecting proper 

executions of orders placed with him, 

(iii) displaying bids and offers, and (iv) 

monitoring the market for the classes of 

options assigned to him. 

The Exchange may employ former 

members, who previously acted in the 

capacity of a DPM before the initiation 

of the PAR Official, to act on behalf of 

the Exchange in a trading floor capacity. 

If these PAR Officials and OBOs become 

members of the Exchange after working 

for the Exchange in a trading floor 

capacity for longer than one year, these 

individuals would have to again 

complete the Orientation Program and 

re-pass the Qualification Exam under 

current CBOE Rule 3.9, since they 

would have not possessed an authorized 

trading function for longer than one 

year. 

These PAR Officials and OBOs, while 

acting in an Exchange trading floor 

capacity, are ultimately acting in the 

same capacity as when they were 

operating in a DPM capacity prior to the 

initiation of the PAR Official trading 

floor capacity. Therefore, the Exchange 

feels that it is appropriate to amend its 

procedures to allow for the one year 

period under CBOE Rule 3.9(g) to be 

applied to not only an individual who 

has possessed an authorized trading 

function, but also to an individual who 

has acted in an Exchange trading floor 

capacity, since both functions are 

similar. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,5 in general and 

furthers the objectives of Section 6(b)(5) 

of the Act,6 in particular, in that it 

should promote just and equitable 

principles of trade, serve to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and 

protect investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

This proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding, or 

(ii) as to which CBOE consents, the 

Commission will: 

(A) By order approve such proposed 

rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–CBOE–2007–15 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2007–15. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the CBOE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–CBOE–2007–15 and should 

be submitted on or before May 1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6671 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 


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